A report in the Wall Street Journal on Monday afternoon saying:
“A series of worrying inflation reports in recent days is likely to lead Federal Reserve officials to consider surprising markets with a larger-than-expected interest rate hike of 0.75 percentage points during of their meeting this week”
led a cascade of analysts to revise their forecasts for Wednesday’s FOMC decision from +50bp to a 75bp interest rate hike. So much so that 75 bp has now become a consensus.
Rate futures fell to just under 100% for a 0.75% move.
Check out Monday’s US Time Zone Summary for more and a recap of the huge stock plunge (linked above).
The re-opening of stock index futures on Globex allowed US stock indices to recover a bit. Oracle’s strong earnings report after the spot market closed helped the rebound.
Asia-Pacific stocks fell.
Crypto continued his cratering. BTC/USD has dropped to around US$21,000 and is around 21.5,000 as I post.
On the major exchange rates, the session was relatively subdued, the market’s attention is elsewhere.